Insuring your belonging

Are you going on a business trip or little get away with your loved ones - laptops, digital cameras, 5-carat diamond rings and other sweethearts? Then you need to review your Homeowners policy, if you rent,- renters insurance policy, before departure. You don’t want any of your babies be stolen or damaged, at least not without a proper coverage.

Just as your pool and garage are automatically covered by the Homeowners insurance, so is personal property. Although the percentage is a bit higher, usually 50-75% of your residence insurance. If you are not sure what your personal property is, just imagine turning your house upside down and shaking it - whatever falls out belongs to this category. And as I mentioned before, it is protected not only in your house, but in a car or anywhere in the world you’d be. The same way as with detached structures, make sure you have enough coverage for all your high-end personal property. Don’t just rely on what comes automatically with Homeowners insurance.

There are two options to cover your belongings:

  • 1 used, referred to as cash value;
  • 2 new, referred to as replacement cost.

Get the replacement cost option! It’s usually about 10% more expensive, but at claim time you’d be glad to receive 30-40% more. In comparison with actual cash value coverage, where insurance company will pay you less, after deducting depreciation.

But! Yes, there’s always a “but”! It is actually a requirement of the replacement value coverage that you really replace the damaged or stolen property. Until you do, you only get the depreciated or used value.